Search Results: Enforcement Actions

CFPB is Proceeding with Some of Its Enforcement Actions, But Most Are Now Stayed or Dismissed

Although the Consumer Financial Protection Bureau (CFPB or Bureau) voluntarily dismissed a slew of its own enforcement actions following Rohit Chopra’s removal as CFPB Director on January 31, 2025, the Bureau has affirmatively indicated its intent to continue litigating only a handful of cases so far. There were, by our…

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NJ Attorney General Issues Finding of Probable Cause for Discrimination on Part of Cash Advance Business

On March 11, 2025, the New Jersey Attorney General announced that it had issued a Finding of Probable Cause for violation of the New Jersey Law Against Discrimination against a business that provides cash advances and loans to borrowers. The Finding of Probable Cause found that the business had a policy of…

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Amid Dismissals and Uncertainty, CFPB Says It Will Continue Litigating At Least One Matter Inherited From Prior Administration

In a significant development, for the first time under Consumer Financial Protection Bureau Acting Director Russell Vought, CFPB litigators have informed a court that they have received authority from the Acting Director to continue litigating a matter. Since Rohit Chopra was removed as Director of the CFPB on January 31,…

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D.C. Attorney General Sues Online Lender Over Alleged Illegal High-Interest Loans

On November 19, 2024, the District of Columbia’s Attorney General (DC AG) announced ​that it had filed a complaint ​in the ​Superior Court of the District of Columbia ​against an online lender for alleged violations of the District of Columbia Consumer Protection Procedures Act (CPPA).  According to the DC AG’s complaint, the company, which operates both a website and…

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CFPB Enters into Consent Orders with Tech Company and Bank Over Credit Card Allegations

On October 23, 2024, the CFPB announced that it had entered into separate consent orders with a large tech company and a bank over a joint credit card venture. The CFPB alleges that the credit card, which combined the tech company’s software with the credit-backing of the bank, ​was launched prematurely, which…

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CFPB Files Proposed Judgment in Bank Suit Regarding the Opening of Unauthorized Accounts

​On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a proposed stipulated final judgment and ​order in its suit against a national bank accused of allegedly opening unauthorized accounts on behalf of consumers​​. ​ The proposed judgment would resolve allegations that the bank opened unauthorized accounts in the names of its customers.  As…

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CFPB Enters Into Consent Order with Bank Resolving Allegations of Force-Placed-Insurance

On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a national bank, resolving allegations related to the bank’s auto lending practices. The consent order​ ​​related to auto lending practices resolves allegations that the bank’s practices related to force-placed insurance policies violated the Consumer Financial Protection Act of 2010 (CFPA), 12…

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CFPB Enters Into Consent Order With Financial Technology Company

On May 7, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a financial technology company, resolving allegations that the company committed unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA), by failing to provide consumers who closed their accounts with timely…

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California Attorney General Warns California-Chartered Banks and Credit Unions On Surprise Overdraft Fees and Returned Deposited Item Fees

On February 20, 2024, California Attorney General Rob Bonta issued a letter warning California-chartered banks and credit unions with assets under $10 billion that charging surprise overdraft fees and returned deposited item fees is likely an unfair business practice that violates California’s Unfair Competition Law (UCL), Bus. & Prof. Code,…

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National Bank Settles with NY Attorney General for $700K

​On April 17, 202​4, the New York State Attorney General (NY AG) announced that it entered into an Assurance of Discontinuance​ (AOD) with​ a national bank, resolving​ allegations related to the bank’s debt collection practices.  The bank is a nationally chartered bank that issues debit cards, prepaid cards, payroll cards, and gift cards, primarily through third-party servicers, many of whom…

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CFPB Enters Into Consent Order with For-Profit Coding School

Piggy Bank with a Graduation Cap

​On April 17, 2024, the Consumer Finance Protection Bureau (CFPB) announced ​that it had entered into a consent order​ with BloomTech Inc., d/b/a Bloom Institute of Technology (BloomTech), and BloomTech’s CEO, Austen Allred, resolving allegations that the company’s practices with respect to income-share agreements (ISAs) violated various consumer protection statutes.  BloomTech, formerly known…

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California Federal Court Bans Mortgage Operators as Result of Joint FTC and DFPI Case

​On February 2, 2024, the U.S. District Court for the Central District of California issued an order permanently banning several companies and their owners from the telemarketing and debt relief businesses and requiring them to pay approximately $19 million in restitution and civil money penalties​.  This order came as a…

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Payments Company Settles with DFPI Over Alleged Junk Fees

​On January 9, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with an internet-based financial services company that allows online merchants to offer payment in installments to its customers.  The DFPI alleged that the company violated the California Consumer Financial Protection Law (CCFPL) by failing to disclose…

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FTC Enters Settlement with California-based Lead Generator

On January 2, 2024, the Federal Trade Commission (FTC) announced it had reached a settlement with a California-based lead generator resolving allegations that the company facilitated illegal telemarketing calls.  This lead generator owned the domain to several websites and sold thousands of leads to third parties for telemarketing purposes. The…

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CFPB Issues Consent Order Against Credit Reporting Agency For Alleged Failures to Timely Place Credit Freezes And Locks On Conumser Reports

​​On October 12, 2023, the Consumer Financial Protection Bureau (CFPB) issued a consent order and a stipulation ​against a parent credit reporting agency and two of its subsidiaries for for alleged violations of the Fair Credit Report Act (FCRA) and the Consumer Financial Protection Act (CFPA). The CFPB alleged that as early as…

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CFPB Takes Enforcement Action Against Mortgage Lender and Real Estate Brokerage for RESPA Violations

On August 17, 2023, the CFPB announced that it had taken enforcement action against a Florida-based mortgage lending and servicing corporation, as well as a New York-based real estate brokerage firm, issuing consent orders against the businesses for “exchanging things of value return for mortgage loan referrals”, in violation of Section 8(a)…

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FTC Approves Consent Order with Payment Card Network Operator for EFTA Violations

On May 30, 2023, the Federal Trade Commission (FTC) announced that it had finalized a consent order with one of the nation’s largest credit and debit card providers in an administrative action regarding alleged violations of the Electronic Funds Transfer Act (EFTA), as amended, 15 U.S.C. § 1693o-2, and its implementing regulation,…

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